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INDIANAPOLIS (WTHR) — Indiana is one of the first states to get federal approval to expand Medicaid treatment.

The Family and Social Services Administration announced a new waiver allows Indiana Medicaid to pay for acute inpatient stays at large institutions for mental disease and illness.

“This waiver allows Indiana to, for the first time, offer the full continuum of treatment for Hoosiers with co-occurring mental health and substance use disorders,” FSSA Secretary Jennifer Sullivan, M.D., M.P.H. said. “This begins a new era of vastly enhanced access and hope in many communities, aided by allowing some facilities already engaged in this vital work to expand.”

Medicaid previously wouldn’t pay for that type of stay at any location with more than 16 beds.

The new waiver goes into effect Jan. 1.